Question

Think about the evidence presented in the video for why market economies prevailed over Soviet-style communist economies. Match the evidence from the video with the economic statement it supports.

Answer 1

The government, not the market, deciding

what gets produced leads to producing

many items consumers don’t want. - There was an abundance of flannel pants

and a lack of jeans.

Command economies have a lack of

incentives to produce what would sell. - The Communist Party “knew what everyone

needed" (or thought it did).

The government answers economic

questions in a command economy. - The Soviet Union’s economy was based

on centralized planning.

Resources can be misused when the

market doesn’t decide how resources

are used. - The emphasis was on military production,

not fashionable clothes.

Market systems respond to signals from

consumers. - Jeans were being sold in the West and

not in the Soviet Union.

Step-by-step explanation:

PLATO